The increase of 4% in deposit interest and bond gains from April 2027, seems to had minimal press, but is potentially a huge revenue raiser. Could realising some gains on bonds before end of tax year be prudent?

If the plan was to cash in next year anyway, then it could be worth bringing it forward to before April.  Generally no automatic case for rebasing though. The panel thought rebasing an onshore bond was usually pointless and an offshore bond was generally better left to roll up unless the money is needed before April 2027. Compare surrender-and-reinvest against leaving it in place, using the relevant tax rates and allowing for advice charges.

Rachael Reeves increased Property rental income tax rates by 2% last year, and Healey has increased it by a further 2% (so 44% in England for a higher-rate tax payer) Do you think the Scottish government will increase it by the same amount, and it will effectively be 46% for a higher-rate taxpayer.

The Scottish Government had indicated it would mirror the earlier change, so the panel expected the same approach, but it was not confirmed. If mirrored, the Scottish higher-rate outcome could be 46%.

Regarding the increase in the taxation on savings by 4%. Would there any benefit to put cash inside a bond in order to avoid the higher tax rate of taxation?

Potentially yes. For a higher-rate taxpayer, interest generated within an onshore bond could ultimately be taxed at an effective rate below the 44% outside rate, especially if the client is basic-rate or non-taxpaying on exit. Model this against the bond's CGT disadvantage and the investment mix.

Will property income (4% rise in 2027) apply to commercial property income as well as residential?

Yes, where the commercial property is owned personally. The new property-income rate applies to personal property income; property held by a company remains within corporation tax.

can you clarify- savings income tax rates are 24%,44% & 49% but am I right earned income remains at 20%/40% & 45%?

Yes for the rest of the UK: earned income remains at 20%, 40% and 45%, while savings income becomes 24%, 44% and 49%. Scottish earned-income rates remain devolved.

Does the increase in income tax for rental income apply to holiday letting income as well?

Yes. Holiday-letting income is included in property income and is also no longer relevant earnings for pension-contribution purposes.

Is there any detail on possible removal of the 'anti-avoidance' measures associated with the Cash ISA restrictions (22% tax, inability to transfer?)

The signs are that the anti-circumvention rules will be withdrawn: the fact sheet/pages were removed and the Treasury reportedly indicated this to Martin Lewis. However, the Budget documents were silent, so the panel said to await the draft Finance Bill or formal HMRC/Treasury confirmation.

Will they still tax cash interest in a S&S ISA at 24%? with the change to cash ISA rates back to £20k they don't need to include the penalty I'd have hoped.

It appears this penalty will go with the other anti-circumvention rules, but the panel had not seen formal confirmation. The position should become definitive in the draft Finance Bill or an HMRC/Treasury announcement.

Can you transfer from a regular ISA into a FTB ISA?

Yes in principle, subject to the £4,000 annual cap. HMRC intends to permit transfers from an ordinary ISA, although individual providers may choose not to support them because of the administration involved.

Is the LISA not better for accruing interest, since you can earn interest on the bonus immediately?

No. With the same investment return, adding 25% at the start or at the end produces the same result mathematically; the order of multiplication does not change the final value.

It seems those with LISAs can continue with them?  But can new LISAs be taken out still?

Yes. New LISAs can still be opened before the replacement First-Time Buyer ISA launches in 2029, and existing LISAs can continue under their current rules.

So you can't transfer a LISA to a FTB ISA

Correct. A LISA cannot transfer to the new First-Time Buyer ISA because that could produce two government bonuses on the same savings. A Help to Buy ISA can transfer.

Can clients continue to contribute into LISAs or will they be closed at some point?

Existing LISA holders should be able to continue contributing under the current rules. New LISAs are expected to remain available until the new ISA launches in 2029.

So Just to clarify, is the new Isa top up given on the value of the Isa and not on the initial contribution?

The government bonus will be paid as a percentage of subscriptions made, rather than the value of the account, at the point that an individual withdraws funds to purchase their first home. This means that the bonus is calculated on what an individual has put into the account, minus any withdrawals made, not on any investment growth or savings interest accrued subsequently.

If you have a LISA, will the LISA be forced into this new First Time ISA and therefore only be able to be used on New build houses, or can you keep the LISA still for existing uses (i.e. any property up to £450k)?

No. Existing LISAs are not being forced into the new ISA and retain their current qualifying-property rules, including the £450,000 limit. The new First-Time Buyer ISA can also buy any qualifying home; only the separate government equity-loan scheme is restricted to new builds.

Is the tapered pension allowance on ~£300 an added complication? WHy did they not just ignore the taper?

The taper targets the benefit at low-income pensioners. Removing it would simplify the measure but would extend the credit to pensioners on much higher incomes and materially increase the cost.

How would the new pension allowance/credit interact with the starting rate band for savings? would savings income within the SRB still taper the pension allowance?

Yes. Savings income within the starting-rate band is still taxable income taxed at 0%, not exempt income, so it still counts when testing the taper. Moving savings into an exempt wrapper such as an ISA may preserve the credit.

My accountant described the new pensions allowance "Pensioners will have a tax credit of 20% of the difference between their pension and the personal allowance. If they have other income the credit will be reduced by £1 for every £3 above the State pension"- seems different to how you presented it?

That description is consistent with the presentation. The credit broadly covers 20% of the gap between the personal allowance and full new State Pension, then is reduced by £1 for every £3 of income above the full State Pension level.

On the pension tax allowance how does marriage allowance work with that for the 2 respective spouses

The panel expected the marriage allowance and pension tax credit to operate separately. Subject to confirmation, a person should receive each tax reducer if they independently meet its income conditions.

Sorry, but re the pensions tax allowance, where does the £13,319 amount come from? its not 3 x the PTA?

The £13,319 limit is £13,037 plus three times the £94 tax credit: £13,037 + (3 × £94) = £13,319. The figure will change as the State Pension and credit change.

In which scenarios would the new third part of the 'adjusted triple lock' come into play?

It would smooth unusual earnings movements by using average earnings over a period rather than allowing a one-year spike—such as the post-Covid earnings rebound—to drive an exceptional State Pension increase.

It was previously confirmed that Onshore Bonds internal tax credit would apply at 22% up from 20%, does this continue to apply with the new 24% rate?

Yes. The legislation refers to the savings basic rate rather than a fixed 22%, so the onshore bond's internal tax and basic-rate credit should automatically move to 24%.

does the 24% tax credit mean that a BRT could in some way reclaim the 4% delta?

No general 4% reclaim is available. The 24% is the basic-rate credit. A niche exception may arise where a bond gain falls within a savings allowance: unused credit can sometimes offset another income-tax liability, but this needs case-specific calculation.

If Trustees sell an offshore bond, will the tax be 45% or 49% in 27/28?

49% in 2027/28.  Remember that the person assessed on bond chargeable gains differs depending on the type of trust and the circumstances. You can find more information about this on our Tech Matters site.

What is the definition of rebasing?

Rebasing means fully surrendering the existing bond at its current value and reinvesting the proceeds into a new bond, thereby crystallising the existing gain and resetting the acquisition value.

With frozen allowances have you run the numbers about rebasing bonds now for a basic rate taxpayer who will become a higher rate taxpayer in the future

Yes, it can make sense where a current basic-rate taxpayer has unused basic-rate band but expects to be higher-rate later: crystallising a gain now can wash it out at the lower rate and increase the new investment base. Model the exact gain and ensure advice charges do not outweigh the saving.

What would be the strongest argument due to this budget to use an offshore bond for a client currently ART, hoping to be BRT in ten years time?

The strongest case is gross roll-up while the client is an additional-rate taxpayer, followed by withdrawal when they are basic-rate or can use savings allowances. The benefit is likely greatest for income-heavy returns; model it because dividend-heavy returns may take longer for offshore gross roll-up to win.

Can you explain how the basic rate credit now works for an onshore bond?

From 2027/28 an onshore bond is treated as having paid basic-rate tax at 24%. A basic-rate taxpayer normally has no further tax on the gain; higher- and additional-rate taxpayers pay the balance through the chargeable-event/top-slicing calculation. The credit is not normally refundable.

Can you provide an example when an OEIC with CGT would be better than a Life investment bond for income tax advantages and vice versa?

An OEIC can be better where returns are mainly capital gains and the investor can use the CGT exemption or realise gains at lower CGT rates. A bond can be better where returns are income-heavy, the client is higher/additional rate now but lower rate on exit, or an offshore bond gain can be taken within savings allowances. Compare the income-tax advantage with the CGT disadvantage.

They said the 2 year change was because civil service DB schemes are in administrative hell and they don't think they can process them in 2 years.

Civil Service scheme administration delays may help explain the removal of the two-year rule, but the panel found no official rationale confirming this.

Might the death benefits change be linked to Capita issues?

Possibly, but the panel found no evidence linking the change specifically to Capita issues.

The death Benefit change was due to serious delays in Civil Service Pension death payments

That may be a practical reason for the change, but no official explanation was identified.

you mentioned the change to Serious ill health lump sum before 75, can you confirm is that only for uncrystallised funds anyway? thanks

Yes. A serious ill-health lump sum can only be paid from uncrystallised funds.

On the changes to the 2-year death benefits rule, do you think there will be scope to change this for clients who have already fallen into this trap, i.e., being taxed now due to breaching the 2 years?

The change applies to payments made from Budget Day, 28 October 2026. The panel did not expect refunds for payments already taxed under the old rule; if retrospective relief had been intended, it would likely have been announced.

If you take the amount above the LSDBA as a single "income payment" pre 75 would this be tax free?

Yes, if paid as an income payment through drawdown before age 75. The LSDBA excess charge applies to lump-sum death benefits; income payments remain tax-free under the pre-75 rules.

Can a pension be used as the whole gift to charity to benefit from the 36% IHT rate.

Yes. Legislation is to be introduced to allow notional pension property to be separated into its own estate component, allowing the 10% charity test—and therefore the 36% IHT rate—to be met for that component.

Have you seen anything in the pension/IHT legislation that would affect a FURBS? Some legal advisers are saying the new legislation deletes the IHT exemption for pensions from the legislation. Because the legislation for FURBS relied on that same section the IHT exemption will cease to be available?

The panel did not see the new pension-IHT legislation as changing FURBS treatment: FURBS are trusts, not registered pensions. Their existing IHT treatment is already complex and can depend on timing and contributions, so the provider or a specialist adviser should confirm the position.

what are CGT implications of gifting property to son/daughter please?

A gift is normally a disposal at market value for CGT, so a gain may arise even though no cash is received. Private-residence relief may remove the CGT if it is the donor's qualifying home, but continuing to occupy it can create an IHT gift-with-reservation issue.

Still need the detail, but the qualification for Founders Relief is broadly aligning with the qualification rules for a firm to gain entry to an EIS.

The panel agreed the requirements appear extensive and potentially similar in spirit to EIS qualifying conditions, but recommended specialist accountancy advice rather than relying on a broad comparison.

Can you explain the calculation of £30,000 on the extra business disposal

BADR falls from £1 million to £500,000. The relieved CGT rate is 18% versus the normal 24%, a 6-point saving; losing relief on £500,000 therefore costs 6% × £500,000 = £30,000.

Founders’ Relief: Seems a complicated set of requirements to qualify -thoughts

Yes. The panel considered Founders' Relief highly valuable but subject to many complicated conditions and recommended specialist accountancy advice.

Do you expect a reduction on EGRs for the Pru Onshore Bond, given the savings interest taxation increase?

The panel did not know and said EGR reflects many asset classes, countries and tax regimes, so the savings-tax change alone cannot reliably predict whether it will rise or fall.

What about the effects of tax changes on savings on corporate investments

For a company using historic-cost accounting, an onshore bond gain will be grossed up at 24% rather than 20%, after which the normal corporation-tax calculation follows. The panel saw no new planning angle; sufficient tax liability is still needed to use the credit effectively.

Quite a few clients are seeking to retire in their early 50’s citing the tax system & the future tax burden on pensions (IHT). Are Pru likely to develop a calculator that allows assets to be input to help calculate the ‘sweet spot’ in terms of either retiring early or value of assets to stop working

No calculator was planned. The panel considered the number of variables too large for a useful generic tool and suggested bespoke cash-flow modelling by an adviser or paraplanner.

In his speech the Chancellor said "I am changing outdated rules so that people taking profits out of their companies are taxed consistently" - that sounds ominous but I've not seen anything about this. Do we know what that means?

The panel had not analysed the detailed provision. Their initial reading was that it targets arrangements converting what should be income distributions into capital; specialist corporate-tax advice is appropriate.

you said the govt own 20% equity in the prop on sale but the loan is interest only for the first 5 years. Is this ostensibly the govt providing an interest only mort on 20% of the prop. Also, do we know what the rate will be?

It is effectively a government equity loan for 20% of the property. It is interest-free for five years, then 1.5% in year six and 3% from year seven. The government also retains 20% of any growth when the property is sold, although a buyout mechanism is expected.

If a beneficiary has been receiving 'loans' from a trust which are set to be repaid on their death, reducing the value of their own taxable estate for IHT purposes, is this likely to be scrutinised in future?

Potentially. The announced trust-liability measure appears designed to stop trust-related liabilities reducing the taxable value after HMRC lost a court case. It is specialist territory and was said not to affect ordinary loan trusts; bespoke tax/legal advice is needed for beneficiary-loan arrangements.

Can you do a sort of 3 minute video for the inflation over ten years for cash tool, so one may test  3,4 and 5% inflation and different costs and different interest rates?

The existing inflation tool already allows users to test different inflation, cost and interest assumptions. The panel said a short video could be made but it was not a current priority.

Why is it that Short Dated Gilts for deposits are rarely mentioned in this type of presentation? It is a hugely useful facility and gains are tax exempt.

Short-dated gilts were not covered because the Budget did not change their treatment. The panel accepted that gilt ladders can be useful and gains are generally exempt but noted the additional complexity and that simpler guaranteed products may currently offer competitive rates.

Aside from VCT etc, the penalisation of earners over £250k on pension contributions is unfair. Any thoughts about this

The panel acknowledged that the restriction feels unfair to those affected, but it is a deliberate limit. Clients exceeding it need to consider other investments; VCTs were mentioned, noting their income-tax relief is reducing from 30% to 20%.

Do you envisage the changes due on savings rate tax effecting a stance on using PCLS into Loan Trusts post April 2027 (IHT planning)

No. The panel did not think the savings-rate increase changed the planning stance on using PCLS for loan-trust/IHT planning; the usual suitability analysis still applies.

Is our tax code really one of the worst in the G 7?

The panel did not know. The UK tax code may be among the most voluminous, but they had no evidence to rank its quality or complexity against the other G7 countries.